Buying Property in Tenerife and the Canary Islands as a Foreigner: The 2026 Guide
Published on: June 30, 2026
Yes, foreigners can buy property in the Canary Islands, and they do it in large numbers every year, with no restriction on nationality and no need to be a resident. What makes the Canaries unusual is not the rules around who can buy. It is the tax regime they sit under. The islands are Spanish soil and part of the EU, but they run on their own indirect tax system, which means a new home here is taxed far more lightly than the same home on the mainland.
This guide covers what that actually means for a foreign buyer in 2026: the taxes you pay, the costs you should budget for, what the islands do and don't give you in terms of residency, and how the purchase process works from first viewing to the title deed.
Can foreigners buy property in the Canary Islands?
Yes. Both EU and non-EU nationals can freely purchase and own residential or commercial property across all seven islands, including as non-residents managing the purchase from abroad. There is no special permit and no foreign-ownership cap. The one administrative step you cannot skip is obtaining an NIE (Número de Identificación de Extranjero), the Spanish foreigner identification number you need to sign contracts, pay taxes, and register ownership. Apply for it early, because waiting on the NIE is the most common cause of delay for overseas buyers.
You do not need a visa or residency to buy. A standard tourist entry, or no Spanish visa at all, is enough to complete a purchase.
Why the Canaries are taxed differently from mainland Spain
The Canary Islands operate under a special economic and fiscal regime (the Régimen Económico y Fiscal, or REF), a recognition of their distance from the mainland and their reliance on tourism. The practical consequence for buyers is the IGIC (Impuesto General Indirecto Canario), the islands' equivalent of VAT.
The standard IGIC rate is 7%, against the mainland Spanish VAT (IVA) rate of 21%, or the 10% IVA that applies to new-build homes on the mainland. That gap is the single biggest reason the Canaries can stretch a property budget further than almost anywhere else in Spain.
There is a second, less visible advantage aimed at businesses rather than home buyers: the ZEC (Zona Especial Canaria), a special zone offering qualifying companies a corporate tax rate of around 4%, against the standard 25% on the mainland. It is not relevant to a simple holiday-home purchase, but it matters if you are structuring an investment vehicle, running a rental business at scale, or relocating a company, in which case it is worth taking specific advice on whether you qualify.
What you will actually pay: taxes and closing costs in 2026
The biggest line in your closing costs is the purchase tax, and which one applies depends on whether the property is new or resale.
| Cost | New build (from a developer) | Resale (from a previous owner) |
|---|---|---|
| Purchase tax | IGIC at 7% | ITP transfer tax at roughly 6.5%, no IGIC |
| Stamp duty (AJD) | Roughly 1% | Not applicable |
| Notary fees | Around 0.5% to 1% | Around 0.5% to 1% |
| Land Registry fees | Around 0.5% to 1% | Around 0.5% to 1% |
| Independent lawyer | Typically 1% to 1.5% | Typically 1% to 1.5% |
| Typical total closing costs | Around 9% to 11% | Around 8% to 9% |
Indicative ranges. A safe planning figure is to set aside roughly 10% to 12% on top of the purchase price, depending on the property and whether you take a mortgage.
After completion, the main recurring cost is the annual property tax, IBI (Impuesto sobre Bienes Inmuebles), levied by the municipality on the property's cadastral value (valor catastral), which is usually well below market value. Rates vary by town, generally falling between about 0.4% and 1.1% of the cadastral value, which for a standard home tends to work out at a few hundred to a couple of thousand euros a year. Expect separate local charges for waste collection, water, and similar.
If you let the property out to tourists, note that this requires a local tourist licence and that rental income is taxable. Non-residents and residents are taxed differently, so this is worth confirming with a Canary-based accountant before you count on rental returns.
The residency question: there is no longer a Golden Visa
This is the point most often misunderstood in 2026, so it is worth being blunt about it. Spain ended its Golden Visa programme on 3 April 2025. Buying property in the Canary Islands, or anywhere in Spain, no longer grants residency or any pathway to it. If your goal is an EU residence permit, property here is not the route, and you should look at Spain's other visa categories (such as the non-lucrative or digital nomad visas, each with its own income and other requirements) or at programmes in other countries entirely.
Owning a home does not by itself give you the right to live in Spain full-time. As a non-resident you remain subject to the standard Schengen limits on how long you can stay.
What about the proposed "100% tax" on non-EU buyers?
You may have seen alarming headlines about Spain proposing a tax of up to 100% on property purchases by buyers from outside the EU. As of 2026 this remains a proposal that has been discussed but not enacted into law. It is not in force, and proposals of this kind can be amended heavily or dropped entirely before they ever reach the statute book. Treat any figure you read as provisional and confirm the current legal position with a Spanish lawyer before you commit. Do not let a proposal that may never pass drive your decision, and do not assume it will never pass either.
For the wider picture on this measure, see our explainer on Spain's proposed 100% tax on non-EU buyers.
Which island should you look at?
The seven islands are genuinely different markets, not interchangeable.
- Tenerife is the largest and most liquid market, with the broadest range from high-end villas in the south (Costa Adeje, Los Cristianos) to more affordable inland and northern options. It has the deepest pool of agents, lawyers, and developers used to dealing with foreign buyers.
- Gran Canaria offers a similar breadth with a strong year-round rental market, particularly in the south.
- Lanzarote and Fuerteventura lean toward beachfront apartments and a more design-led, lower-rise feel, popular with northern European buyers.
- La Palma, La Gomera, and El Hierro are smaller, quieter, greener, and cheaper, suited to buyers who want rural property and tranquillity over rental yield and nightlife.
Average prices across the Canaries have been rising and sit in the region of a few thousand euros per square metre as of 2026, but this varies enormously by island and location, so use it only as a rough anchor and check current local data for the specific area you are considering.
The buying process, step by step
- Get your NIE. Apply at a Spanish consulate in your home country or in Spain. Start this first.
- Open a Spanish bank account. You will need it for the deposit, taxes, and ongoing utility payments.
- Engage an independent lawyer. Use your own lawyer, not one recommended by the seller or developer, to run due diligence: title checks, debt and charges on the property, building permits, and licence status.
- Reserve and sign the deposit contract. A reservation followed by a private purchase contract is typical, usually with a deposit of around 10% and clear conditions.
- Complete before a notary. The public deed (escritura pública) is signed before a Spanish notary, the balance is paid, and the keys change hands.
- Pay taxes and register. Purchase tax is paid, and the property is registered in your name at the Land Registry (Registro de la Propiedad).
How to protect yourself
Use a lawyer who is independent of the seller. Verify the title and that there are no outstanding debts, charges, or planning irregularities attached to the property before any money leaves your account. For tourist-rental plans, confirm the licence situation in writing rather than relying on the seller's word. And if you are paying in a non-euro currency, factor in exchange costs, which can quietly add a meaningful percentage to the total.
You can browse live listings across Spain and 50+ other markets on JanusHermes to pressure-test these numbers against real properties.
Frequently asked questions
Can non-EU citizens buy in the Canary Islands?
Yes. There is no nationality restriction. The process and taxes are the same regardless of where you are from; you simply need an NIE.
Do I need to live in Spain to own a property here?
No. Many owners are non-residents who use the property part of the year and let it out otherwise.
Is the Canary Islands cheaper to buy in than mainland Spain?
On taxes, yes, mainly because new homes carry 7% IGIC rather than 10% mainland IVA, alongside generally moderate transfer-tax rates. Whether the property itself is cheaper depends on the island and location.
Does buying give me residency or a Golden Visa?
No. Spain ended its Golden Visa in April 2025, and property ownership does not grant a right to reside.
What is the difference between IGIC, ITP, and IBI?
IGIC is the islands' VAT, charged on new-build purchases. ITP is the transfer tax on resale purchases. IBI is the annual municipal property tax you pay every year as an owner.
A note from JanusHermes
We cover the Canaries because they are one of the few corners of Western Europe where the tax base genuinely favours the buyer, and that nuance gets lost in generic "buying in Spain" guides. If you are comparing the islands against the mainland coast, weigh the lighter IGIC against location, liquidity, and how you actually plan to use the home. JanusHermes is a cross-border real estate platform, not a legal, tax, or immigration adviser.
Disclaimer. This article is general information, not legal, tax, financial, or immigration advice, and does not create any advisory relationship. Property rules, tax rates, and visa programmes change, and the figures here reflect publicly available information as of 2026. Always confirm the current position with a qualified Canary Islands lawyer, tax adviser, or licensed agent before committing to a purchase. JanusHermes accepts no liability for any action taken in reliance on this content.
A note on the numbers: where no source is named, the market figures in this article (prices, yields, costs) are indicative estimates compiled from publicly available market data and industry reporting at the time of writing. Markets move and rules change, so treat them as a starting point and verify current figures with official sources before acting on them.
